2016-01-20 House Journal

2016-01-20 House Journal Page 1471HB 271
HOUSE BILL NO. 271 by the House Rules Committee by request of
the Governor, entitled:
2016-01-20 House Journal Page 1472
"An Act relating to a money services business; relating to
transmitting value that substitutes for money; relating to licensing
requirements and registration through the Nationwide Multistate
Licensing System and Registry; relating to surety bonding
requirements; authorizing certain licensees to contract to use
subdelegates for reloading funds onto stored-value cards; relating
to record retention, reporting requirements, and enforcement
provisions; relating to exemptions; relating to money services
Internet activities; relating to definitions regarding the transmitting
value, currency, and money transmission business activities; and
providing for an effective date."
was read the first time and referred to the Labor & Commerce
Committee.
The following fiscal note(s) apply:
1. Zero, Dept. of Commerce, Community, & Economic Development
The Governor's transmittal letter dated January 18, 2016, follows:
"Dear Speaker Chenault:
Under the authority of Article III, Section 18, of the Alaska
Constitution, I am transmitting a bill relating to money services
businesses and modernizing the statutes to reflect new forms of
money, payment systems, and technology.
The bill would modify AS 06.55 related to money services businesses
in order to update the aged money services businesses laws to
recognize and support new means of money transmission, including
the use of other values that substitute for money. Moreover, the
proposed revisions would eliminate redundant or outdated references
and practices. Due to the number of changes, the Alaska Uniform
Money Services Act would become the Alaska Money Services Act.
Currently, AS 06.55 regulates money services businesses, which
include money transmitters, issuers of traveler's checks, money orders,
or stored value (prepaid cards), sellers or redeemers of traveler's
checks, money orders or stored value, and currency exchangers.
2016-01-20 House Journal Page 1473
A modernization of the existing AS 06.55 would ease access to
reloading of prepaid cards to persons in rural Alaska that use these
services and provide for the use of the Nationwide Multistate
Licensing System and Registry (NMLS). The NMLS allows states to
share important information about licensed money services businesses
and their activity, and its use eases the application process for a money
services business, both for licensing and subsequent filings, which
allows the Department of Commerce, Community, and Economic
Development (department) to more easily regulate licensees located
within and outside of the state.
Additionally, the proposed revisions would allow for more effective
examinations of money services businesses doing business in the state.
The department would be able to respond quicker to complaints filed
by the Alaska public against money services businesses by eliminating
a lengthy pre-exam notification. The bill would establish higher
bonding limits for licensees. Additionally, the language would clarify
that all persons, licensed or not, that engage in money services are
subject to daily penalties for violations of the Alaska Money Services
Act. This would ensure that the State holds violators accountable and
increases protection for consumers.
Since its adoption in 2007, the money services business world has
changed dramatically to include new technology and advanced means
of transmitting funds between parties, including virtual currencies
such as bitcoin. The proposed revisions would provide a new
definition for "money transmission" that includes the transmission of
other values that substitute for money. This broad definition would
allow the department to continue its regulation of emerging payment
systems and respond to potential violations of AS 06.55 quickly.
I urge your prompt and favorable action on this measure.
Sincerely,
/s/
Bill Walker
Governor"